WED, 02 DEC, 2020-theGBJournal- The Central Bank of Nigeria (CBN) today announced the introduction of Special Bills which it says is part of efforts to deepen the financial markets and avail the monetary authority with an additional liquidity management tool.
The CBN said the Special Bills will have Tenor of 90 days
-Zero coupon, applicable yield at issuance will be the CBN
-The instrument will be tradable among banks, retail and institutional investors
-The instrument shall not be accepted for repurchase agreement transactions with the CBN and shall not be discountable at CBN window, and
-The instrument will qualify as liquid assets in the computation liquidity ratio for deposit money banks.
The CBN said it will ‘’continue to ensure optimal regulation of systemic liquidity and promote efficient financial markets in support of economic recovery and sustained growth.
Central Bank Bills are often issued for monetary policy purposes including exchange regulations but majorly as means of controlling excess liquidity.
Twitter-@theGBJournal|email: info@govandbusinessjournal.com.ng
